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Microcap & Penny Stocks : JAWS Technologies - NASDAQ (NM):JAWZ

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To: Perchance N. who wrote (130)4/11/1998 12:32:00 PM
From: justaninvestor   of 3086
 
Perchance - The float is the # of shares that in reality trade. For example, Jaws has 6.775M shares outstanding. If the insiders control 5M of these shares and, presumably, are not willing to sell right now, then those shares don't really trade and the float would be 1.775M. Not many shares. So now it becomes a supply and demand issue. If Jaws turns out to be a hot commodity, then potential investors are going to have pay more for the stock than if the market were awash in shares.

Obviously, the float can change. If the stock quickly moved to $5, then the insiders might want to realize some profit and sell some shares. You also can have shares in escrow that might not be eligible to be traded for several months.

Makes sense?

Regards

bbruin
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